PSA Peugeot Citroen, the second largest European automaker, has recently announced its financial results for the first three months of the year, with the revenue on the rise.
The recovering French automaker has been helped by the latest strategies to improve pricing, which during the quarter managed to overcome a slower sales volume. The company’s revenue was up 4.6 percent to 13.7 billion euros ($15 billion) for the January to March period, according to a company statement, with the company also buoyed by its 51 percent controlled auto parts maker Faurecia. PSA Peugeot last week said it would increase European production by 10 percent to address recovering demand across the continent and has now opted to lift its full year market surge prediction from one percent growth to four percent. The automaker still refrained from modifying some of its crucial recovery thresholds – even as more bullish industry experts and analysts call them modest. The carmaker kept its forecast of having a two percent operating margin for the core auto production unit by 2018.
Analysts believe the unchallenged goals might be achieved as soon as this year, after the automaker posted years of losses due to the overall European market drop that after a six-year slump yielded a two decade low delivery level. PSA’ sales in Europe rose 4.4 percent but global deliveries slid 1.9 percent to 712,200 units. The auto division revenue was on the rise to 8.95 billion euros, thanks to a pricing boost of 1.7 percent – actually 3.3 percent if we consolidate the Chinese operations as well.